ETFs To Buy On Nvidia's Growth Story

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Nvidia (NVDA - Free Report) delighted investors following its Investor Day, wherein it projected better-than-expected revenues for fiscal Q1 and announced a host of advancements in artificial intelligence, computer graphics, robotics, and data centers.

The graphic maker believes that first-quarter fiscal 2022 revenues are on track to exceed the previously guided forecast of $5.30 billion (+/-2%) with “outperformance in each of its market platforms” including gaming, data center, professional visualization, and automotive. In particular, the new cryptocurrency mining processor product used in cryptocurrency mining is expected to see better-than-expected sales from $50 million to $150 million.

Among the developments, Nvidia is launching its first data-center central processing unit, or CPU, code-named “Grace” based on the ARM platform. This would operate 10 times faster than the existing chips and thus would bolster the chipmakers’ competitive position against its rivals - Intel Corp. (INTC - Free Report) and Advanced Micro Devices (AMD - Free Report). Nvidia is now in the CPU, GPU, and DPU markets.

Additionally, the company announced the launch of eight new Nvidia Ampere architecture GPUs that can be used in laptops, desktops, and servers to make it possible for professionals to handle demanding workloads.

Impressed by the upbeat revenue outlook and news of new data center CPU, more than a dozen analysts increased their price targets on the Nvidia stock. As such, shares of NVDA hit new all-time highs on Apr 13. Nvidia overtook Intel last year as the largest chip maker by market value and has surged nearly 121% since then partly driven by Chief Executive Jensen Huang’s bet on some of the hottest fields in tech, videogaming, and artificial intelligence.

Nvidia currently has a Zacks Rank #2 (Buy) and a Growth Score of B. It belongs to a top-ranked Zacks industry (placed at the top 18% of 250+ industries).

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